TL;DR Breakdown
- Polkadot price expected to rise to $45.00 before observing correction
- Closest support level lies at $37.50
- DOT faces resistance in crossing above the $42.50 mark.
Polkadot price action continues its bull rally as the price breaches the $40.00 mark. DOT value has more than quadrupled since the start of the year, and the strong bullish momentum suggests that there is still more to come.
In January, Polkadot price rose to the $10.00 mark but faced strong resistance in crossing above the price level. And even after crossing the mark in the latter half of the month, the price stuck to the $17.50 mark until early February. In February, the asset has breached resistance after resistance as the price climbed above the $20.00 mark on the 8th of February and the $30.00 price level on the 18th.
In the past 48 hours, the price rose from $31.11 to above $41.50, where it currently trades.
The broader cryptocurrency market observes a strong bullish sentiment across the last seven days as most assets record double-digit profits. Some assets like Polkadot, Uniswap, and Binance record up to 50 to over 100 percent increases in their prices across the period.
Technical indicators
Across the technical indicators, the MACD shows bullish momentum and shows an increasing bullish pressure, as observed in the dark green histograms. The two EMAs are both moving upwards, with the 12-EMA further diverging from the 26-EMA showing strong bullish pressure at the price level.
The RSI shows an overbought Polkadot price and issues a sell signal suggesting DOT needs a correction before the asset can continue its bull run. However, despite being overbought, the indicator is currently inclined upwards, suggesting strong pressure from the buyers at the price level.
The Bollinger bands were narrow until yesterday but now show sharp expansion as the price leaves the $30.00 price level. Currently, the indicator is expanding on both sides, suggesting high price volatility for Polkadot.
Overall, the four-hour technical analysis issues a buy signal of reasonable strength as 15 of the 26 major technical indicators suggest an upwards price movement across the timeframe. On the other hand, only one indicator suggests a bearish retracement from the level. Meanwhile, the remaining 10 indicators are neutral and do not support either side.
The 24-hour technical analysis shares this sentiment with 14 of the 24 indicators suggesting a positive price action against one suggesting a downwards breakout from the level. Meanwhile, nine indicators are sitting on the fence and do not issue signals supporting either side.
What to expect from Polkadot price?
Traders should expect Polkadot price to rise towards the $45.00 price level before DOT observes a correction. The correction should cause DOT to fall to the $37.500 level with the potential for further downwards movement. DOT should continue rising once the price has established support at the $40.00 mark.
Conversely, if Polkadot price breaks above the $46.00 mark, DOT may rise to the $50.00 level as the FOMO continues.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
